Winning with Digital PrintWinning with Digital Print

Delivering the Value

Mamdouh ElsayehMarketing Support Directorg pp

PSBG

Fuji Xerox

1

Agenda

WW & US Digital Print Market Trend� WW & US Digital Print Market Trend

Key Digital Applications� Key Digital Applications

� Xerox Production Product Portfolio� Xerox Production Product Portfolio

� Winning with Digital� Winning with Digital

2

Agenda

WW & US Di it l P i t M k t T d� WW & US Digital Print Market Trend

3

Business Challenges

Reducing Costs� Reducing Costs

Increasing Productivity� Increasing Productivity

� Reducing Turnaround Time� Reducing Turnaround Time

� Growing Revenueg

� Improve Business Results

4

The Digital Opportunities th d G i !are there… and Growing!

16%

12%

14%

16%

ow

th

6%

8%

10%

Page G

ro

2%

4%

6%

Tota

l P

0%

2%

Digital Service Provider Other Printers

5

Source: Caslon Market Intelligence, Fall 2004

The Future of Global Markets

F All P i ti t 2015!For All Printing to 2015!

Revenue Growth

6

Frank Romano, Pira International 2006

The Future of Global Markets

For All Printing to 2015!For All Printing to 2015!

Digital Print Volumes

7

Frank Romano, Pira International 2006

WW Digital Print Growth

Asia Pacific is growing faster:Asia Pacific is growing faster:�� Asia Pacific is growing faster:Asia Pacific is growing faster:

9 912.0

9.9

6.4

8.0

5.5 5.36 0

8.0

10.0

%3.9 3.6

3.1 3.0

5.3

2.0

4.0

6.0%

Growth

0.0

orld

NA

.

alia

hina

Kong

ndia

pan

rea

wan

Wor

N.A

Aus

tral

Chi

Hong

Ko Ind

Japa

Sou

th K

oreTai

wa

8

USDA Economic Research Service

Fast Growing Trends in DigitalFast Growing Trends in Digital

Production1:1

MarketingWeb

FulfillmentShort Runs/

Turnarounds

Expanding

Applications

• 75% of four-color jobs are less than 5000*

• 33% of jobs

• 59% cite turn-around pressure***

• 30% of print providers offer

• From 2004 to 2007, digital printing revenue tripled to 21% of a printer’s total revenue***

• Digital color POD will

• Variable Data Print enables 28% price premium*

• 30% of all jobs jrequired in 24 hrs or less****

• By 2010, 100% expected <24 hrs*

Web-to-print*• Percent of Print

Spending conducted on Web

i 18% YOY*

• Digital color POD will grow from $3B (1995) to an estimated $49B (2009); a combined annual growth rate of

jexpected to be variable by 2007**

• Full-color variable data will double in

9

growing 18% YOY*annual growth rate of 22%!*

next 2 years

*Source: InfoTrends/CAP Ventures **Source: Interquest ***Source: NAPL ****Source: Frank Romano *****Source: Carlson & Company

US: Color Color Pages Passed gMonochrome Digital Printing in Value

Retail value of digital printing

(Source: Caslon & Co. research)

12.0

8 0

10.0

per

yea

r

6.0

8.0

of

do

llar

s p

Color

B/W

2.0

4.0

Bil

lio

ns

0.0

2004 2005 2006

Source: Caslon & Co

10

Source: Caslon & Co.

2006 Color Color Digital Printing By SegmentBy Segment

2006 Color Digital Pages by Segment

4

5

6

7

f P

ag

es

1

2

34

llio

ns o

f

Color

0

merc

ial

Printe

r

Prin

ter

t Maile

r

In-p

lant

Bur

eau

Cen

ter

Bil

Com

m

Dig

ital P

Qui

ck P

Dire

ct M In

Ser

vice

B

Data

C

11

Digital Color Page Volume Growth

2006 Digital Color Page Volume NA2006 Digital Color Page Volume, NA

25.0

15.0

20.0

of

Pag

es

5.0

10.0

Bil

lio

ns o

0.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

12

Agenda

K Di it l A li ti� Key Digital Applications

� Xerox Production Product Portfolio

� Winning with Digital

13

Digital Printing Snapshot A li tiApplications

� Transactional – going Transpromo

Direct Mail cost pressure driving to digital� Direct Mail – cost pressure driving to digital

� Collateral – web to print gaining groundp g g g

� Manuals – declining

B k th t h h� Books – the great monochrome hope

� Emerging – Photo booksg g

14

Digital Page Volumes by Application

2006 Digital Page Volumes by Application

80

100

120

140

fP

ag

es

Monochrome

20

40

60

80

llio

ns

of Monochrome

Color

0

ctio

na

l

DM

nu

als

,

Bo

oks

nte

rna

lF

orm

s

llme

nt

Oth

er

late

ral

od

ica

lsle

tte

rs

cto

rie

sta

log

s

f S

ale

,g

ing

&

An

nu

al

Ca

rds,

lastics

ee

tin

g

Bi

Tra

nsa

c

Ma B

InF

Fu

lfi

Co

l l

Pe

rio

Ne

ws

Dir

ec

Ca

t

Po

int

of

Pa

cka

g A

Bu

s C Pl

Gre

15

2006 North America Digital Color Page % b ApplicationPage % by Application

Collateral 23.4%

Direct Mail 22.5%

Transactional 10.1%

Newsletters 10 1%Newsletters 10.1%

Business Cards, Letterhead 6.0%

Fulfillment Kits 4.6%

Books 4.2%

Other 3.0%

Greeting Cards 2.8%

Point of Sale, Displays, Shelf Tags 2.6%

Manuals, Course Packs 2.3%Manuals, Course Packs 2.3%

Annual Reports 1.8%

Packaging & Labels 1.7%

Internal Reports 1.6%

Catalogs 1 3%Catalogs 1.3%

Periodicals 0.8%

Business Forms 0.7%

Plastics 0.4%

16

Directories 0.2%

Transaction Applications

� Which is more interesting?

Whi h t & ll t iti ?� Which generates cross & up-sell opportunities?

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"We No Longer Think of Cost Per Page, We Think of Revenue Per Page."

Direct Mail “DM”Which of Theses Mediums Can Deliver Relevancy?

• Television

R di

• Discussion Board

F t f• Radio

• Web

• Face to face

• BillboardWeb

• Direct mail

Billboard

• Cell phone text

• Telephone

p

message

B d• Email

• Blog

• Banner ad

• Bus wrap

18

• Blog Bus wrap

2006 U.S. Direct Mail Color Digital Page Forecast

Direct mail: color digital pages vs. all printingg p g p g(Data source: Caslon & Company)

350

400

450

200

250

300

350

(billio

n/y

ear)

Color digital

All printing methods

50

100

150

200

Pages ( All printing methods

0

50

2005

2007

2009

2011

2013

2015

2017

2019

Year

Source: Caslon & Co.

19

Direct Marketing/Lead Generation: F d Fi l dFord Finland

Program Objectives

� Increase parts and service sales

� Dealers to control content of

aftermarket sales campaigns

Sh t th ti i d t d� Shorten the time required to produce

campaigns

StrategyStrategy

� Create a Web-to-print solution

allowing independent dealers to setallowing independent dealers to set

their own content, offers for products,

and services Source: PODi, www.podi.org

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Make it easy - For the End User

� SRU

� Slippery Rock University pp y ypersonalized the cover and filled-in student reservation form.O i t ti� Orientation program was completely booked within five working days

� BMA

� BMA Insurance distributed personalized term life

21

personalized term lifeinsurance enrollment forms to 12K potential customers

� Preprinted the customer infoM l i d

Source PODI

Another “Hot” Application: W b t P i t C ll t lWeb-to-Print Collateral

U d f C ll t l M t� Used for Collateral Management

� Transfers Control to the User

� Users Can Order Items 24 Hours a Day, 7 Days a WeekWeek

� Collateral Can Be Static or Variable

� Maintains Brand Integrity

� Leading Suppliers: Printable, Xerox FreeFlow, g pp , ,Printer’s Presence, Page Path, XMPie

22

Web-to-print for Real EstateWeb to print for Real Estate

B i N d� Business Need� Develop solution to simplify

print ordering for real estateprint ordering for real estate agents

� Strategy� Strategy� Simple web-to-print solution

that allows real estate agents to initiate projects

� Supports virtually any templated print producttemplated print product

23

Beyond Print: The Enterprise Value Chain

For every $1 spent on print…

The Enterprise Value Chain

For every $1 spent on print…

Process

DataDesign Compose RIP Finish Fulfill Distribute

Track

ResponseRepository

Print

Another $6 is spent on content and fulfillment!

U t 15% f ’ llUp to 15% of a company’s overall revenue is spent on content

Content is a $1 Trillion Market

This is the New Print Value Chain

24

Sources: IDC; CAP VenturesThis is the New Print Value Chain

Sources: IDC, CAPV

Agenda

Xerox Production Product Portfolio� Xerox Production Product Portfolio

Winning with Digital� Winning with Digital

25

The Right WorkflowThe Right Workflow

� Workflow Is the Management of a Job From Origination� Workflow Is the Management of a Job From Origination

Through Generation of the Invoice

� How print gets done

� Printing accounts for only 7%-22% of total job costg y % % j

�Workflows Are Unique and Vary From Customer to

Customer, and Application to Application

�Optimization / Productivity�Optimization / Productivity

�Offset / Digital

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FreeFlow Meets Customer Requirements

Your Customer’s Requirements

� Lower costs

FreeFlow Enables

� Automatic correction of print file

� Increase value add for customers

� New sources of revenue

problems before printing

� Customer convenience and

t d ti� New sources of revenue turnaround time

� Variable data to create personalized

communication

Through

communication

Provide Value add to Customers & Additional

� Open Architecture, Partners, and Industry Standards

27

Provide Value add to Customers & Additional

Revenue for your Business

The Right TechnologyStrategic Partnerships Across Value ChainStrategic Partnerships Across Value Chain

PartnersPartners

28

Production Color Offerings

NN

iGen3 110

� GATF – 2004 GATF InterTech Technology Award

� Canadian Marketing Association – Innovation Award 2004

uty

Cyc

le Epic Cti-635 in-line UV coaterNewNew

DocuColor 8000� Electronic Publishing – Hot Products 2004

uct

ivit

y / D

u

DocuColor 7000

DocuColor 8000g

� BERTL- Best High Volume CRD/Commercial

Production Color Device 2005

pee

d /

Pro

du

Horizon Color Works Booklet Maker

DocuColor 7000

NewNew

Sp

� BERTL- Best Mid Volume Production Color

Device 2004DocuColor 5000

DocuColor 242/252/260

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Industry’s Best and Broadest Portfolio

Right Business Model Right Workflow Right Technology

Production Monochrome Offerings

C t Sh t

New� Better Buys for Business

Cut Sheet

DocuTech Highlight Color

New

Cyc

le

DocuTech- Editor’s Choice November 2004

DocuTech 6135

vity

/ D

uty

C … and new Nuvera 288

Nuvera Production

/ Pro

du

ctiv

� BERTL – Best 100 to 120ppm High-Volume Production Device 2005

� Electronic Publishing – Hot Products 2004 December 2004

� Better Buys for Business – Editor’s Choice November 2004

Nuvera Production

System

Sp

eed

/

� BERTL - Best Entry Level Print Shop Device 2004

y

Nuvera Copier Printer

4110

I d t ’ B t d B d t P tf li

BERTL Best Entry Level Print Shop Device 2004

� Better Buys for Business – Editor’s Choice November 2004

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Industry’s Best and Broadest Portfolio

Right Business Model Right Workflow Right Technology

Continuous Feed Printer FamilyPrinter Family

S dS dSpeedSpeed

1064 ipmDocuPrint 1050 duplex

—600 dpi; 1064 ipm (244 fpm)

1000 ipm

DocuPrint 1000

—300 dpi; 1000 ipm (230 fpm)850 ipm

DocuPrint 850 duplex

—600 dpi; 850 ipm (195 fpm)532 ipm

DocuPrint 525 CF simplex

—600 dpi; 532 ipm (244 fpm)500 ipm

DocuPrint 500 CF simplex

—300 dpi; 501 ipm (230 fpm)

500 ipm

600 dp ; 53 p ( p )

New

DocuPrint 425 CF simplex425 ipm Patented Multiplex

Xerox 495 Continuous Feed Duplex

---600 dpi; 500 ipm (115 fpm)

500 ipm

31

DocuPrint 425 CF simplex

—600 dpi; 425 ipm (195 fpm)

Agenda

Wi i ith Di it l� Winning with Digital

32

How are They Winning?

• Growing the Customer’s Business

• Creatively Using Digital Color

S lli “V l ” d “S l ti ”• Selling “Value” and “Solutions”

• Leveraging the Internetg g

• Increasing Profitability

33

THANK YOUTHANK YOU

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